The Bitcoin market remained on a positive field during the last days, climbing in minor steps towards the first target, the $40,000 zone. The $40,000 will indicate that the market has made the first steps towards a bullish recovery, with clear indications for the next steps.
If the push in Bitcoin continues at the same pace, we will reach the $40,000 point, where there will be more resistance than the current phase. This resistance will break if only there is a massive breakout in the price and a story that will dominate the market and lead investors to more bullish approaches.
As we have highlighted multiple times in previous Bitcoin Price Analysis articles, the time between the consolidation phase and the new bullish trend will be crucial as it will reveal how strong an upcoming bullish trend will be. The expectations remain calm for now but we need to see the large picture and wait for the next day’s revealings.
In the day trading window, we can observe that the correction didn’t happen from $38,000 to $35,000, but to $37,000. This means that the minor correction didn’t help many traders to short-sell the Bitcoin price and then invest again at $35,000. Yesterday, the Bitcoin price hit $39,000 but corrected back to $38,500.
This momentum ups and downs can create enough space for day traders to find small trends and exploit them accordingly. The only sure thing that we can note in the day trading window is the instant retrieval that will take place, once the price hits the $40,000 point.
The XRP market has experienced a 60 % drop since the all-time high level at $1.40 in early September 2021, passing from different support levels during the previous periods. The main focal point for the market was the $1.00 and it will remain as the “target” for a future bullish uptrend.
The main support points during the previous bearish trend laid around $0.76 – $0.80, which collapsed after the bearish moves in the entire crypto market. The current phase sustained the Ripple price around $0.60, a price level that has been tested several times during the first half of 2021.
This consolidation will lead the Ripple market in the next phase according to its correlation with the Bitcoin market. A bullish uptrend will bring the Ripple price some steps closer to $1.00, a bullish target that will mark the full recovery and the end of bearish thoughts.
On the other hand, a negative scenario could bring the market into the $0.40 – $0.50, which will become harder to escape from. As low the price goes, the market depth is going deeper, absorbing those trends. The expectations are laid upon Bitcoin’s trend so any fundamental story or development will have a minor impact on the price formation.
The moving averages have been placed on the bearish formation and this is not going to change for the next few days. The trading volumes have made several spikes during the last days, showing that investors are coming back and forth in the Ripple market. Those backs and forths will have less impact in the market unless they are joined from a move in the Bitcoin market.
In the short-term diagram of our Ripple Price Analysis, we can observe that the current consolidation period has found a solid support point at $0.60, which doesn’t let the market drop below it. This support zone along with the consolidation period will become the foundation for the next trend, either on the bullish or the bearish side.
As we can see in the day trading window, the classic pattern around a specific price can be confirmed also in Ripple’s case. The price fluctuations around the $0.60 line, with a slight uptrend in the market formation.
The volatility has not been climbing at high levels but those small moves could help day traders to exploit minor differences in the price movements. The expectations for the continuity in the Ripple market for the consolidation zone have been increased during the last days as Bitcoin moves to more conservative areas.
A breakout in the Bitcoin market will bring another major move in the Ripple market also, letting investors exploit more opportunities in the crypto market.
MACD index passed on the “green” area, indicating that the market has accumulated and absorbed all the negative energy from the previous period and it might be ready for a bullish turn. A continuous “green” period will be a strong indicator that the bulls are waiting in the corner for the next move so we have our eyes open for them.
The RSI index moved around value = 35, showing that the bear market is probably over and the next moves will be on the positive side. This prediction will be confirmed from the Bitcoin market also and its moves.
Bitcoin is taking small steps towards the $40,000 point, which is the major resistance point for the current situation. As long as the Bitcoin price is moving in a positive direction, the rest of the crypto market will remain stable, “waiting for directions”.
This is evident in the Ripple market, whose price has remained around $0.60, into a consolidating phase, that will break when a major move in the Bitcoin market comes up. The entire crypto market waits for the next trend…
Read our previous Bitcoin Price Analysises here!
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